LEONHARD KURZ (UK) Limited
Tax Strategy Publication
Year ended 31 January 2023
The Company regards this publication as complying with its duty to publish its tax strategy for the year ended 31 January 2023 in accordance with current tax legislation under Schedule 19 Finance Act 2016.
It is the Company's policy to comply with HMRC rules concerning all forms of taxation while taking advantage of accepted and efficient practices for minimising the cost to the business. The Company does not take part in any tax avoidance schemes. The Company takes specialist advice from its external tax advisers as and when appropriate.
The Company's Finance Director in the UK who is a Chartered accountant takes overall responsibility for ensuring the Company's compliance with all taxation rules and regulations, and reports back to the Company's Board of Directors as appropriate. He keeps in close contact with the Company's external tax advisers and also monitors the actions of the internal teams under him on a regular basis. He has in place a detailed set of systems, procedures and controls covering all aspects of how the business is run from a financial point of view, including tax matters where relevant, to ensure that the Company's level of tax risk remains at acceptable levels.
Whilst the Company has yet to be allocated a customer relationship manager at HMRC the Company aims to work together and cooperate fully with HMRC in relation to tax matters and make appropriate disclosures where required by legislation.
UK corporation tax is a significant cost to the Company and it instructs external tax advisers to advise on corporation tax matters. Advantage is taken of tax losses carried forward, capital allowances on eligible capital spend and other statutory reliefs where applicable. The Company pays corporation tax on time. It also carefully examines all potentially disallowable expenditure for items such as business entertaining to ensure the correct disallowance of the relevant amounts are identified. The Company operates an arm's length pricing policy with affiliates.
With regard to PAYE and National Insurance, the Company operates standard practices for payroll. In the case of benefits in kind these are carefully monitored and reported to HMRC in the normal way. There is a PAYE Settlement Agreement in place to settle the employee's tax and national insurance on specific employee rewards.
With regard to VAT, the Company has in place detailed practices whereby transactions are carefully examined by its internal accounting team who is well versed and trained to ensure the correct VAT treatment.